Americans lost over $211 million to Covid-19 scams and stimulus payment fraud, according to the Federal Trade Commission. Since January, the agency has received over 275,600 complaints.
While fraud activity is down from the highs recorded earlier in the year, it will likely pick back up now that President Donald Trump has signed the $900 billion pandemic relief package, the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.
That’s because the legislation includes provisions for a second round of stimulus payments, up to $600 per individual, including dependent children under age 17, if you’re an individual who earned less than $75,000 ($150,000 for those married filing jointly) in 2019. Stimulus payments start to phase out if you earned more than that, stopping completely for those with adjusted gross incomes of $87,000 or more ($174,000 for married couples).
The IRS is expected to initiate direct deposits of stimulus payments before Thursday and send out paper checks and debit cards by Jan. 15. And while Trump signed the relief package slightly later than expected, a senior official told CNBC on Monday that the payments will go out on the same timeline.
Yet the lingering uncertainty surrounding the second round of stimulus payments creates the “the perfect storm for fraudsters trying to make a dishonest dollar,” says Ashley Moody, Florida’s attorney general. On Monday, Moody’s office put out a notice cautioning the public about the increased…